Scant, uneven efforts by U.S. state authorities to identify the individuals who own or control companies formed within their jurisdictions hobble federal efforts to investigate and prosecute money launderers, an intergovernmental group recently concluded. In its first assessment of the United States in more than 10 years, the Paris-based Financial Action Task Force said that U.S. officials mostly rely on a "range of investigatory powers" to obtain beneficial ownership information on the "vast majority" of the estimated 13 million active legal entities operating in the country. But state governments generally don't collect accurate, sufficient and timely data on beneficial owners,...
U.S. rules against illicit finance are, for the most part, sophisticated and comprehensive, but minimal regulation of attorneys, accountants and other nonbank firms constitute significant, longstanding loopholes that money launderers and terrorist financiers can exploit.
An intergovernmental group tasked with monitoring how effectively nations fight money laundering and terrorist financing is set to criticize the United States for failing to address several long-term deficiencies in the country's laws and regulations.
The exploitation of nominee accountholders, misuse of correspondent relationships and complicity of third-party payment processors continue to frustrate efforts to shield banks from money laundering and terror financing, U.S. officials said Friday.
FATF's latest round of mutual evaluations is proving "much more intense" resource-wise than past examination cycles, according to Calvin Wilson, the executive director of the intergovernmental group's affiliate organization in the Caribbean.
The world's premier financial crime watchdog declined Friday to suspend Turkey's membership and disclosed how its assessors will begin evaluating jurisdictions on the efficacy with which they fight illicit finance.